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How to claim for loss of under construction property

Tax queries 480 views 1 replies

I am a salaried and had booked a under construction Flat in year 2010, on Bank Loan which got cancelled in Jan 2014.

Please find the details about the losses below

Reason of Loss : My under construction Flat was cancelled by the builder.

Amount of Loss : Approx 4 yrs of EMIs (i.e. Interest + Principal Amount) paid to the Loan provider Bank. 

Please let me know if you could help me to get proceed with either of below options

a) Refund of Tax paid in last 4 years by resubmitting the previous year ITRs
(I couldn't find where I should mention this loss amount in ITR-1 form)
or
b) consideration of loss amount in current year's Tax calculation. 
    ( I couldn't find under which section I can declare these losses as Section 24 and 80C says for possesed house only.)
 
Are there other options to leverage IncomeTax benefit over the incurred losses ?
 
Kindly let me know whether a salaried person could meet with a loss or not ? 
 
If yes, I believe that there must be a way out to project such losses as per Guidelines for Income Tax Laws.
 
Please suggest, as its a huge financial loss to me for time, amount, value, price appreciation and emotional also.
 
Thanks
Replies (1)

You can claim deduction u/s 24 and 80C only for flat whose possession is taken. In your case the flat is not purchased at all. This loss (principal+ interest paid) cannot be allowed under any section.

[Has the builder not refunded the amount paid by you? If he has refunded the amount the loss suffered by you  will only be the interest.

If he has not refunded the amount and If you prepare a balance sheet for your IT return, show this amount as receivable from the builder, so that in case he pays you in future, that will be adjusted.]


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